Defiant May takes on bosses over crackdown on migrants

‘People expect to see numbers coming down’ ‘Uncertainty and confusion’

BUSINESS leaders clashed with the Government over Brexit yesterday after Theresa May pledged to curb the flow of cheap, low-skilled labour from Europe.

Business lobby groups reacted with fury to leaked Government proposals outlining a tough new immigration system after Britain leaves the EU.

But Downing Street hit back, saying business needs to end its reliance on cheap migrant labour and do more to train British workers. Mrs May said ministers had a duty to curb immigration after last year’s EU referendum, and restated her pledge to slash net immigration to the ‘tens of thousands’.

It also emerged some FTSE 100 leaders have refused to sign a letter backing the Government’s Brexit strategy. Downing Street quietly asked executives to sign an open letter saying they wanted to ‘make a success of Brexit’, and welcoming the Government’s push for a transitional deal.

But this was not welcomed by some, with one executive reportedly saying: ‘There is no way we could sign this given the current state of chaos surrounding the talks.’

It is understood the letter, obtained by Sky News, was drafted by No 10 and was due to be made public as Mrs May tries to create support for the legislation going through Parliament about our EU withdrawal.

The row followed the leak of a Home Office document setting out plans to curb immigration from the EU after Brexit. Mrs May said: ‘Immigration has been good for the UK, but people want to see it controlled as a result of our leaving the EU.

‘The Government continues to believe it is important to have net migration at sustainable levels, particularly given the impact it has on people at the lower end of the income scale in depressing their wages.’

Defence Secretary Sir Michael Fallon said: ‘We have always welcomed to this country those who can make a contribution to our economy, people with high skills.

‘On the other hand we want British companies to do more to train up British workers, to do more to improve skills of those who leave our colleges. So there’s always a balance to be struck. We’re not closing the door on all future immigration but it has to be managed properly and people do expect to see the numbers coming down.’

The document, which has caused uneasiness among some ministers, suggests lowskilled workers from the EU would only be allowed to stay for a year or two, and EU citizens would be barred from moving to the UK to look for a job. Ministers are also considering a ‘direct numerical cap’ on the numbers who come here from Europe after the UK leaves in March 2019.

Big business reacted angrily to the proposals. Ufi Ibrahim, chief executive of the British Hospitality Association, said the proposals would be ‘catastrophic’ for her industry, which relies heavily on cheap EU labour.

She said: ‘We understand the need and the wish to reduce immigration but we need to tread carefully and be aware of the unintended consequences – some businesses will fail, taking UK jobs with them.’

Neil Carberry, of the Confederation of British Industry, said: ‘An open approach to our closest trading partners is vital for business, as it attracts investment to the UK. And it also helps keep our economy moving by addressing key labour shortages.’

The Institute of Directors said business leaders would not welcome the proposals and its members would be hoping for changes in the Government’s final position.

The National Farmers’ Union said a cut in migrant workers could cause ‘massive disruption’ for the industry. Deputy president Minette Batters said 80,000 seasonal workers a year are needed ‘to plant, pick, grade and pack over 9million tonnes of fruit, vegetable and flower crops’.

But Alp Mehmet, of the Migration Watch think-tank, said ministers were right to pressure businesses to wean themselves off cheap foreign labour. He said: ‘We want to encourage employers to train local people and make more of an effort to prepare for a time when there won’t be all these people coming in with ready-made skills prepared to work for lower wages.’

The leaked document was a draft of proposals due to be published this autumn. Sources said a further six drafts have since been produced and it has not yet gone to ministers for approval.

But some senior ministers, including Chancellor Philip Hammond, Business Secretary Greg Clark and even Home Secretary Amber Rudd are understood to have concerns about slashing immigration from the EU too quickly.

Senior figures in Brussels also raised concerns yesterday about the plans.

Gianni Pittella, leader of a large group within the Eurohe pean Parliament, said it revealed the ‘nasty side of Theresa May’s Government’, adding: ‘Should the British Government follow the position outlined, it will not help the negotiations. It adds uncertainty and confusion.’

German MEP Elmar Brok, an ally of Angela Merkel, said was ‘shocked by the language and content of this paper’, adding: ‘It would be a very difficult situation if this would become official policy.

‘The sound is partly hostile and ... I think we are in a situation that the citizens of the EU are seen as a type of enemy for the UK.

‘This is not an atmosphere where you can find solutions.’

Britain is not legally obliged to pay Brussels a penny when we leave the EU, according to an analysis. Brussels is demanding a divorce payment of up to £90billion, but the report, by the European Research Group made up of Tory MPs, suggests the EU may even owe Britain £9billion.